The Federal Reserve raised the interest rate it charges on short-term loans to banks

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propamanda's picture
propamanda
Status: Bronze Member (Offline)
Joined: Sep 17 2008
Posts: 61
The Federal Reserve raised the interest rate it charges on short-term loans to banks

 

Thursday - the Federal Reserve raised the interest rate it charges on short-term loans to banks:

http://www.nytimes.com/2010/02/19/business/19fed.html?hp

 

 

And Mish's follow-up

http://globaleconomicanalysis.blogspot.com/2010/02/fed-raises-discount-r...

 

Amanda

 

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: The Federal Reserve raised the interest rate it charges ...

The night before an options expiration.  I wonder if the insiders had on the wrong position and needed to give the market a push?

Mike Pilat's picture
Mike Pilat
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 929
Re: The Federal Reserve raised the interest rate it charges ...

Jim Sinclair, admittedly a hardcore gold bull and dollar bear, asserts that this was something of an unplanned, emergency response to recent news that China is selling US Treasurys. At the same time, I believe the yield curve had been the steepest in a very long time, if not ever. It seems the FED was running out of options here...

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